Community Health Tempers 2013 Revenue Outlook

Community Health Systems Inc. (CYH) somewhat tempered the hospital company's 2013 revenue expectations, citing a greater-than-expected deterioration in overall volume during the last quarter, partly hurt by a softer flu season.

The company now expects net operating revenue for the year between $12.98 billion to $13 billion, slightly below the October estimate of $13 billion to $13.2 billion. Community Health said admissions were hurt by softer volume for flu and respiratory and cardiology.

Overall, Community Health expects to report a 6.7% drop in admissions for the year and on a same-store basis, admissions are expected to fall 7.2%.

Shares of Community Health slid 2.2% to $41.00 in after-hours trading.

Community Health last summer offered to buy Health Management Associates Inc. (HMA) for about $3.9 billion in cash and stock, a deal that would give Community Health a strong new position in Florida and create the largest U.S. hospital company by number of hospitals.

On Monday, Community Health also issued 2014 outlook targets to reflect the acquisition of Health Management as if it occurred on Jan. 1. The company sees net operating revenue, less provision for bad debt, between $19.7 billion to $21.2 billion for the combined companies.

Because the deal hasn't closed, analysts haven't yet updated their projections to reflect such a combination. Additionally, Community Health said it expects to revise the expectations to reflect the actual period of ownership of Health Management when it announces earnings in February.

Write to John Kell at [e-mail]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires